(MENAFN- ProactiveInvestors) () the second largest U.S. producer of natural gas reported a first-quarter loss due to lower commodity prices. Shares fell.
Net loss was $3.78 billion or $5.72 per share in the January-to-March quarter compared with a profit of $374 million or $0.54 per share year-over-year the Oklahoma City Oklahoma-based company said in a statement today.
Excluding one-time items Chesapeake had a profit of $0.11 per share above the $0.04 average estimate of 29 analysts polled by Capital IQ.
Revenue fell 45.3% to $2.76 billion missing the Wall Street consensus of $3.68 billion.
Shares dropped 5.3 percent to $15.02 at 2:08 p.m. in New York extending this year’s slump to 23 percent.
Oil and gas output was 686000 barrels oil equivalent per day up 14 percent from a year earlier after adjusting for asset sales.
On average Chesapeake operated 54 rigs in the quarter compared with 67 in the fourth quarter and 60 in the prior-year period.
Capital spending grew 8.6 percent from a year ago to $1.49 billion.
“Chesapeake is meeting the challenge of low commodity prices head-on and delivered a very strong first quarter” chief executive officer Doug Lawler said in the statement.
Chesapeake has struggled to recover from years of aggressive spending as the land-grab approach the company pioneered for oil and gas drilling meant it spent more than its wells generated in profit.
Earlier this year Chesapeake announced plans to reduce its rig operations to their lowest level since 2004 amid falling crude-oil and natural gas prices. It said it would reduce capital expenditures by 37 percent and drop the number of rigs drilling for new oil and gas finds by about 38 percent.
Looking ahead Chesapeake said it now expects oil and gas output of 640000 to 650000 barrels oil equivalent per day. Previously the company forecast output of 635000 to 645000 boepd.
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